The SEPTA board has approved a pair of contracts with Cubic Transportation Systems to develop and implement a new fare payment system, known as SEPTA Key 2.0, by 2029.
The SEPTA board approved a $211 million contract Thursday for a new fare payment system expected to be more reliable and easier to use than the SEPTA Key system in place now.
Cubic Transportation Systems, a San Diego-based company, immediately will begin designing and implementing the new system, known SEPTA Key 2.0, transit authority officials said. The work is expected to be completed in 2029.
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SEPTA Key 2.0 is a "next-generation system" that will allow riders to pay with virtual Key cards rather than the physical cards the current system uses. SEPTA also began accepting contactless payments through credit cards and smartphone apps in 2023.
The SEPTA Key website, mobile app and call center will be upgraded, too.
"As we deploy our technology, we will partner closely with SEPTA to ensure Philadelphia's transit system is state-of-the-art, accessible, and reliable for all riders," Cubic Transportation Systems President Peter Torrellas said in a statement. "Cubic's new innovative system will help transform public transportation in the Greater Philadelphia area to enhance rider experience and increase overall ridership, bringing new revenue to SEPTA for years to come."
The SEPTA board also approved an $18.9 million contract with Cubic for project management and engineering consultants, a spokesperson said.
The existing SEPTA Key - SEPTA's first electronic fare payment system - was designed and implemented by Conduent, a competitor of Cubic based in Florham Park, New Jersey, in 2011. Its deployment was delayed by technical issues, and the SEPTA Key wasn't introduced until 2016.
SEPTA Key has been plagued by periodic glitches in recent years. In January, some key cards were declined by fare kiosks, because they were encoded with incorrect expiration dates. Technical issues last August also barred riders from reloading their Key cards.
Conduent has called SEPTA's decision to spend $211 million on a new system unnecessary, suggesting the transit authority could achieve its objectives with enhancements to the current system.
"We believe making a significant change at this time will likely lead to increased risk of delays, disruptions and costs that have not been accounted for," a Conduent spokesperson told the Inquirer last week.
SEPTA began seeking proposals from companies to develop a new system in 2023. A customer outreach campaign was also conducted to solicit feedback that helped guide the direction of the new system.
"SEPTA's current fare payment system is outdated and overdue for an upgrade," SEPTA Board Chair Kenneth E. Lawrence Jr. said in a release. "It was designed more than a decade ago, and as this technology continues to rapidly evolve, SEPTA must make this critical investment now."